Premier American Uranium and American Future Fuel Announce Updated Mineral Resource Estimate for the Cebolleta Project, Setting the Stage for Planned Expansion Drilling
Premier American Uranium (PAUIF) and American Future Fuel have announced an updated Mineral Resource Estimate (MRE) for the Cebolleta Uranium Project in New Mexico. The MRE, prepared by SLR International and effective as of April 30, 2024, reports 18.6 million pounds of Indicated Mineral Resources and 4.9 million pounds of Inferred Mineral Resources.
The update includes upgrading 80% of the previous Inferred Mineral Resources to Indicated status. The project has potential for expansion and further exploration, with a Preliminary Economic Assessment (PEA) being the next step. The report outlines a commodity price of US$80 per pound of U3O8, with cut-off grades of 0.072% eU3O8 for underground and 0.024% eU3O8 for open-pit mining.
Future work will focus on additional drilling to confirm historical data and expand the resource base. This represents a significant milestone for the project, which encompasses 6,717 acres of mineral rights and 5,700 acres of surface rights. Plans include infill drilling and further exploration in previously untested areas.
- Updated MRE reports 18.6M pounds of Indicated Mineral Resources and 4.9M pounds of Inferred Mineral Resources.
- 80% of previous Inferred Mineral Resources upgraded to Indicated status.
- Commodity price set at US$80 per pound of U3O8, improving economic feasibility.
- Planned Preliminary Economic Assessment (PEA) to further validate the project's potential.
- Extensive exploration potential with 6,717 acres of mineral rights and 5,700 acres of surface rights.
- Historical data shows depletion from past production, potentially affecting future yields.
- Inferred Mineral Resources still need upgrading through additional drill hole data.
- Environmental, permitting, legal, title, taxation, socio-economic, marketing, and political risks not fully evaluated in the report.
TORONTO, June 24, 2024 (GLOBE NEWSWIRE) -- Premier American Uranium Inc. (“PUR” or “Premier American Uranium”) (TSXV: PUR) (OTCQB: PAUIF) and American Future Fuel Corporation (“AMPS” or “American Future Fuel”) (CSE: AMPS, OTCQB: AFFCF, FWB: K14, WKN: A3DQFB) are pleased to announce a current mineral resource estimate and the filing of a Technical Report (the “Technical Report”) for the
Highlights of the Technical Report
- The MRE is based on a commodity price of US
$80.00 per pound of U3O8 using an underground mining cut-off grade of0.072% eU3O8 and an open pit mining cut-off grade of0.024% eU3O8, reported as an:- Indicated Mineral Resource totaling 18.6 million pounds of eU3O8 (6.6 million short tons at an average grade of
0.14% eU3O8). - Inferred Mineral Resource totaling 4.9 million pounds eU3O8 (2.6 million short tons at an average grade of
0.10% eU3O8).
- Indicated Mineral Resource totaling 18.6 million pounds of eU3O8 (6.6 million short tons at an average grade of
- The MRE underscores the Project’s extensive exploration and operating history, incorporating reliable historical data and previously unaccounted areas such as the St. Anthony North pit, while factoring in depletion from past production (Figure 1).
- The current MRE exceeds the historical Inferred Mineral Resource that was prepared for Uranium Resources, Inc. (AMPS’ predecessor) in 2014, upgrading approximately
80% of previous Inferred Mineral Resource to the Indicated Mineral Resource category. - Key recommendations outlined in the Technical Report include:
- Exploration to expand the deposit footprint with potentially positive implications to a mining scenario.
- Collection of additional bulk density and chemical assays in future drilling to confirm historical reported density and radiometric equilibrium results.
- Updating the MRE with additional drill hole data and completing a PEA.
- Strong exploration potential remains at the Project with potential to increase total mineral resources through exploration and expansion drilling in previously untested areas where the mineralized horizons of the Jackpile sandstone are open ended beyond the currently drilled area. Further work to de-risk the Project is expected to include infill drilling to upgrade Inferred Mineral Resource to Indicated Mineral Resource along currently mapped uranium mineralization. The Willie P area, which is not included in the MRE but was the site of previous underground mine operations, is believed to have resource potential which may be augmented by integrating additional historic radiometric logs and grade information into the resource model.
Colin Healey, CEO of PUR, commented, “We are extremely pleased to announce the updated Technical Report on Cebolleta. This asset was identified by our seasoned technical team as “highly attractive” for its resource potential, grade and favourable location on private lands in New Mexico. The new Technical Report represents a significant step forward for PUR and the Project, delivering a current MRE for the first time in a decade, and ahead of plan. The Mineral Resource estimate now exceeds the 2014 historical Inferred Mineral Resource estimate, confirming 18.6Mlb U3O8 in Indicated and 4.9Mlb U3O8 in Inferred (~
Table 1: Summary of Mineral Resources – Effective Date of April 30, 2024
| Classification | Zone | Grade Cut-off (% eU308) | Tonnage (Million st) | Grade (% eU308) | Contained Metal (Million lb eU308) | AMPS Basis (%) | Recovery U308 (%) |
| Underground | |||||||
| Indicated | Area I | 0.072 | 0.8 | 0.168 | 2.6 | 100 | 95 |
| Area II | 0.072 | 2.3 | 0.193 | 8.7 | 100 | 95 | |
| Area III | 0.072 | 0.7 | 0.192 | 2.7 | 100 | 95 | |
| Area IV | 0.072 | 0.0 | - | 0.0 | 100 | 95 | |
| Area V | 0.072 | 0.4 | 0.208 | 1.6 | 100 | 95 | |
| Subtotal Indicated | 4.1 | 0.189 | 15.6 | 100 | 95 | ||
| Depletion JJ#1 | -0.9 | 0.123 | -2.2 | ||||
| Total Indicated | 3.2 | 0.208 | 13.4 | ||||
| Inferred | Area I | 0.072 | 0.2 | 0.118 | 0.4 | 100 | 95 |
| Area II | 0.072 | 0.3 | 0.131 | 0.8 | 100 | 95 | |
| Area III | 0.072 | 0.2 | 0.156 | 0.6 | 100 | 95 | |
| Area IV | 0.072 | 0.1 | 0.105 | 0.3 | 100 | 95 | |
| Area V | 0.072 | 0.2 | 0.161 | 0.5 | 100 | 95 | |
| Total Inferred | 1.0 | 0.135 | 2.6 | 100 | 95 | ||
| Open Pit | |||||||
| Indicated | St. Anthony North Pit | 0.024 | 3.3 | 0.081 | 5.4 | 100 | 95 |
| 0.024 | 0.1 | 0.084 | 0.2 | 100 | 95 | ||
| Subtotal Indicated | 3.4 | 0.081 | 5.5 | 100 | 95 | ||
| Depletion Climax M6 | -0.1 | 0.205 | -0.3 | ||||
| Total Indicated | 3.3 | 0.078 | 5.2 | ||||
| Inferred | St. Anthony North Pit | 0.024 | 1.3 | 0.070 | 1.8 | 100 | 95 |
| 0.024 | 0.3 | 0.078 | 0.5 | 100 | 95 | ||
| Total Inferred | 1.6 | 0.072 | 2.3 | 100 | 95 | ||
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of
shapes and
3. Mineral Resources are estimated using a long-term uranium price of US
4. Mineral Resources have been depleted based on past reported production numbers from the underground JJ#1 and
Climax M6 mines.
5. A minimum mining width of two feet was used.
6. Tonnage Factor is 16 ft3/st (Density is 0.625 st/ft3 or 2.00 t/m3).
7. Numbers may not add due to rounding.
Mineral Resources are not Mineral Reserves, and do not have demonstrated economic viability. The authors of the Technical Report were not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the MRE.
Technical Report
Mineral Resources have been classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) definitions).
The MRE was completed using a conventional block modelling approach. The general workflow used by SLR included the construction of a geological or stratigraphic model representing the Jurassic Morrison Formation in Seequent’s Leapfrog Geo (Leapfrog Geo) from mapping, drill hole logging, and sampling data, which was used to define discrete domain and surfaces representing the upper and lower contact of the Jackpile Sandstone Member. The geologic models were then used to constrain resource estimation completed using Seequent’s Leapfrog Edge (Leapfrog Edge) software. The MRE used a regularized, unrotated whole block approach, inverse distance cubed (ID3) interpolation methodology, and one-foot uncapped composites to estimate the eU3O8 grades in a three-pass search approach. Hard boundaries were used with ellipsoidal search ranges, and search ellipse orientation was informed by geology and mineralization wireframing. Density values were assigned based on historical bulk density records.
Estimates were validated using standard industry techniques including statistical comparisons with composite samples and parallel inverse distance squared (ID2), ordinary kriging (OK) and nearest neighbor (NN) estimates, swath plots, and visual reviews in cross section and plan. A visual review comparing blocks to drill holes was completed after the block modelling work was performed to ensure general lithologic and analytical conformance and was peer reviewed prior to finalization.
Rotary and diamond drilling (core) on the property was the principal method of exploration and delineation of uranium mineralization. From 1951 to 2014 and 2023, AMPS and its predecessors completed a reported total of 3,644 drill holes, of which 3,594 drill holes totaling 1,868,457 ft of drilling are contained in the drilling database provided to SLR. Of the 3,594 drill holes, 2,713 drill holes totaling 1,380,041 ft of drilling were used in the MRE. Historic surface holes missing collar information, lithology information, or corresponding radiometric logs, i.e., assay data, were excluded. A summary of the available data used in the modeling of mineralization is presented in Table 2.
Table 2: Summary of Drill Hole Data used in Mineral Resource Estimation
| Area | No. Holes | Total Depth (ft) | Avg Depth (ft) | Number of Records | ||
| Survey | Lithology | Probe | ||||
| Area I | 296 | 115,364 | 390 | 1,337 | 361 | 292,349 |
| Area II | 380 | 243,232 | 640 | 1,205 | 415 | 478,456 |
| Area III | 234 | 116,021 | 496 | 447 | 1,439 | 207,699 |
| Area IV | 125 | 81,464 | 652 | 247 | 112,191 | |
| Area V | 223 | 139,712 | 627 | 1,720 | 250,023 | |
| Area Sohio_1 | 23 | 9,486 | 412 | 23 | 9,459 | |
| Area Sohio_2 | 16 | 8,354 | 522 | 16 | 8,252 | |
| St. Anthony North Pit | 1,198 | 550,854 | 460 | 1,298 | 98 | 5,737 |
| St. Anthony South Pit | 215 | 113,679 | 529 | 216 |
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FAQ
What is the recent mineral resource estimate for the Cebolleta Uranium Project?
The recent MRE for the Cebolleta Uranium Project reports 18.6 million pounds of Indicated Mineral Resources and 4.9 million pounds of Inferred Mineral Resources.
What is the significance of the updated mineral resource estimate for PAUIF?
The updated MRE is significant for PAUIF as it upgrades 80% of previous Inferred Mineral Resources to Indicated status, enhancing the project's economic feasibility.
What are the future plans for the Cebolleta Uranium Project?
Future plans include a Preliminary Economic Assessment (PEA), additional drilling to confirm historical data, and exploration to expand the resource base.
What is the commodity price used in the MRE for the Cebolleta Uranium Project?
The commodity price used in the MRE is US$80 per pound of U3O8.
What are the cut-off grades for the Cebolleta Uranium Project?
The cut-off grades are 0.072% eU3O8 for underground mining and 0.024% eU3O8 for open-pit mining.
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